Balanced and highly diversified portfolio with a strong foundation in North American and global equities

Report created on Aug 2, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is well-structured, emphasizing a blend of North American and international equities. With 50% allocated to the BMO S&P 500 ETF, it has a significant focus on US equities, complemented by a 20% allocation each to Canadian and developed markets outside North America. The remaining 10% in emerging markets introduces additional global exposure. This mix underlines a strategic emphasis on diversification across geographies and market capitalizations, with a balanced approach to risk.

Growth Info

Historically, the portfolio has demonstrated a Compound Annual Growth Rate (CAGR) of 12%, with a maximum drawdown of -28.62%. The days contributing most significantly to returns highlight the portfolio's sensitivity to market volatility. Despite this, the overall performance suggests a resilient strategy that has navigated market cycles effectively, benefiting from the growth potential of equities while managing risk through diversification.

Projection Info

The Monte Carlo simulation, using historical data to forecast potential outcomes, presents a range of future scenarios. With 987 out of 1,000 simulations yielding positive returns and a median projected increase of 287.3%, the analysis supports the portfolio's potential for continued growth. However, it's important to remember that these projections are based on past trends, which do not guarantee future performance.

Asset classes Info

  • US Equity
    50%
  • Stocks
    20%

The portfolio's asset allocation leans heavily towards equities, split between US, Canadian, and international stocks. This concentration in equities is suitable for achieving growth over the long term but carries higher volatility. The absence of significant allocations to fixed income or alternative assets might limit risk mitigation options during market downturns.

Sectors Info

  • Technology
    23%
  • Financials
    20%
  • Industrials
    11%
  • Consumer Discretionary
    9%
  • Health Care
    7%
  • Telecommunications
    7%
  • Energy
    6%
  • Consumer Staples
    6%
  • Basic Materials
    5%
  • Utilities
    3%
  • Real Estate
    2%

Sector allocation is well-diversified, with the highest weightings in technology and financial services. This sectoral spread is indicative of the portfolio's growth orientation but also exposes it to sector-specific risks. Technology, for instance, can be highly volatile, while financial services are sensitive to interest rate changes. Diversification across other sectors like industrials and healthcare provides a counterbalance, reducing overall portfolio volatility.

Regions Info

  • North America
    70%
  • Europe Developed
    12%
  • Asia Emerging
    6%
  • Japan
    5%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographic distribution is heavily weighted towards North America, reflecting a home bias but also capitalizing on the stability and growth potential of developed markets. The inclusion of developed and emerging markets outside North America enhances global exposure, which can offer growth opportunities and risk mitigation through geographic diversification. However, the modest allocation to emerging markets suggests a cautious approach to higher-risk regions.

Market capitalization Info

  • Mega-cap
    46%
  • Large-cap
    33%
  • Mid-cap
    18%
  • Small-cap
    2%

The portfolio's market capitalization breakdown shows a strong inclination towards mega and big-cap stocks, which are typically less volatile than smaller companies and offer steady growth prospects. However, the limited exposure to small and micro-cap stocks might mean missing out on higher growth potential these segments can offer, albeit with increased risk.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

The portfolio appears to be positioned near the Efficient Frontier, suggesting an optimized risk-return profile based on its current composition. While adjustments might enhance efficiency, they should be considered in the context of changing market conditions and personal risk tolerance. Regular reviews can ensure alignment with investment goals and risk preferences.

Dividends Info

  • Vanguard FTSE Canada All Cap 1.90%
  • Vanguard FTSE Emerging Markets 2.10%
  • Vanguard FTSE Developed All Cap ex North Amer Idx ETF 1.20%
  • BMO S&P 500 0.70%
  • Weighted yield (per year) 1.18%

The portfolio's dividend yield is relatively modest, reflecting its growth-focused strategy. While dividends contribute to total return, the primary aim here appears to be capital appreciation. Investors seeking higher income might consider increasing allocations to assets with higher yields, though this could alter the portfolio's risk-return profile.

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